Goldman, Citigroup to sell commercial mortgage debt

Goldman Sachs Group Inc. and Citigroup Inc. are marketing $876 million of bonds backed by commercial mortgages, according to a person familiar with the offering. The securities, tied mostly to malls, shopping centers and office buildings, are supported by 43 loans on 108 U.S. properties, said the person, who declined to be identified because terms aren’t public. The bonds are slated to be sold next week, the person said.

Commentary

With the recent turnover in leadership at the Federal Housing Finance Agency, we may be standing at the precipice of great change in the government’s role in supporting the mortgage market through Fannie Mae and Freddie Mac.